Executive Summary
Iridium Communications delivered a solid QQ3 2024 quarter with revenue of $212.8 million, up 7.7% year over year and 5.8% quarter over quarter, supported by a resilient gross margin of approximately 49.3% and an EBITDA of $106.3 million. Net income of $24.4 million contributed to earnings per share (EPS) of $0.21, reflecting a meaningful improvement from prior periods as the business benefited from mix and operating leverage. Operating income stood at $54.9 million with an operating margin near 25.8%, underscoring a modestly expanding profit profile on a top‑line that remains stable within a high‑utilization satellite network services framework.
The quarter showcased strong cash generation, with net cash from operating activities of $118.6 million and free cash flow of about $100.0 million, supported by disciplined capital expenditure of $18.6 million. The company ended the period with cash and cash equivalents of $159.6 million, total debt of $1.795 billion and net debt of roughly $1.635 billion, yielding an interest coverage close to 2.0x. The balance sheet remains burdened by high leverage, but cash flow generation provides a plausible path to deleveraging while funding ongoing network and growth initiatives.
From an investment perspective, Iridium’s core differentiator remains its global satellite connectivity platform with sizable long‑cycle government and enterprise demand. The company is positioned to monetize expanding IoT, asset tracking, and hosted payload opportunities, which could support both revenue stability and incremental cash flow. However, the short‑to‑mid term risk profile is driven by high indebtedness, ongoing capital commitments, and competitive dynamics in the satellite communications ecosystem. Valuation metrics imply a premium versus broader telecom peers, reflecting the unique asset base and growth optionality, but investors should monitor leverage maturation, free cash flow conversion, and any potential developments in government contracting pipelines.
Key Performance Indicators
QoQ: -24.40% | YoY:1 588.79%
QoQ: -22.22% | YoY:1 703.05%
Key Insights
Revenue: $212.8m, YoY +7.68%, QoQ +5.82%
Gross Profit: $156.2m, Gross Margin ~49.4% (vs. 73.39% gross profit ratio)
Operating Income: $54.9m, Margin ~25.78%
EBITDA: $106.3m, EBITDA Margin ~49.97%
Net Income: $24.4m, Net Margin ~11.49%
EPS: $0.21 (diluted $0.21), YoY EPS growth ~1703% and QoQ change ~-22.22%
Cash Flow: Operating cash flow $118.6m; Free cash flow $100.0m; Capex $18.6m
Liquidity: Cash & equivalents $159.6m; Total debt $1.795b; Net debt ~$1.635b; Interest coverage ~1.99x
Balance...
Financial Highlights
Revenue: $212.8m, YoY +7.68%, QoQ +5.82%
Gross Profit: $156.2m, Gross Margin ~49.4% (vs. 73.39% gross profit ratio)
Operating Income: $54.9m, Margin ~25.78%
EBITDA: $106.3m, EBITDA Margin ~49.97%
Net Income: $24.4m, Net Margin ~11.49%
EPS: $0.21 (diluted $0.21), YoY EPS growth ~1703% and QoQ change ~-22.22%
Cash Flow: Operating cash flow $118.6m; Free cash flow $100.0m; Capex $18.6m
Liquidity: Cash & equivalents $159.6m; Total debt $1.795b; Net debt ~$1.635b; Interest coverage ~1.99x
Balance Sheet: Total assets $2.751b; Total liabilities $2.088b; Total stockholders’ equity $663.8m; Debt to capitalization ~0.730; Debt ratio ~0.652
Valuation Context: P/S ~16.96x, P/B ~5.44x, EV/EBITDA ~47.72x; Dividend yield ~0.45%
Note: All figures in USD unless stated otherwise.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
212.77M |
7.68% |
5.82% |
| Gross Profit |
156.15M |
8.91% |
61.18% |
| Operating Income |
54.85M |
94.82% |
25.67% |
| Net Income |
24.45M |
1 588.79% |
-24.40% |
| EPS |
0.21 |
1 703.05% |
-22.22% |
Key Financial Ratios
operatingProfitMargin
26%
operatingCashFlowPerShare
$1.01
freeCashFlowPerShare
$0.85
dividendPayoutRatio
66.8%
Management Commentary
Transcript data not provided in the input. In the absence of an earnings call transcript, the highlights below synthesize the quarterly results and widely reported company commentary concepts that are typical for Iridium’s QQ3 2024 discussions. Management commentary would typically emphasize: (i) cash flow generation and free cash flow conversion (ii) margin resilience despite high fixed cost base from satellite assets (iii) progress in IoT, asset tracking, and hosted payload initiatives (iv) visibility into government and enterprise contract opportunities (v) liquidity management and deleveraging trajectory. Specific quotes from the QQ3 2024 call are not available in the provided data.
Forward Guidance
No formal forward guidance was included in the provided QQ3 2024 data. Given the elevated debt load and ongoing capex needs for satellite infrastructure and hosted payload initiatives, the company’s medium‑term guidance would likely focus on sustaining free cash flow generation, balancing deleveraging with growth investment, and monitoring cadence of government and large commercial contracts. Investors should monitor: (1) debt reduction progress and interest expense trajectory, (2) cash conversion from operations to free cash flow, (3) progress on IoT and hosted payload initiatives, and (4) any updates to government contracting pipelines or defense-related demand.